An affiliate of VIP International Corporation (“VIP”), finalized its previously announced acquisition of Lexington Services for US$7.5 million in cash it was announced today.
VIP is a channel marketing provider that drives revenue for hotels, car rental companies, and regional airlines via a multi-channel reservation sales center, the adoption of leading-edge technology, and ongoing client education. A combined client base of 4,600 properties for the two companies makes VIP the second largest reservation channel sales provider globally.
John Burns, president of Scottsdale, Arizona-based Hospitality Technology Consulting said, “Through its purchase of Lexington, VIP International stands to introduce an extensive client support and coaching program that promises to be highly beneficial to Lexington’s customer base. Concurrently, VIP gains mass and marketshare that will allow it to move forward with increased vigor. In total the acquisition appears positive for VIP International, for Lexington Services and for the hotel industry.” Burns is a leading hospitality analyst who speaks frequently to hotel and travel industry audiences.
“Now that the transaction is complete, we are moving swiftly to increase the number of revenue managers serving our client hotels by adding 19 revenue managers in the Dallas office,” said Kelly Blake, president of VIP International, who set 1st Quarter 2004 as the target date for the additions. “Lexington has done a tremendous job building an exceptional customer base; to those nearly 2,900 customers globally, VIP brings its reputation and proven ability to drive revenue.” Blake also noted the hotels will be divided into smaller account groups to enable greater revenue-generating service levels and consulting, a hallmark of VIP’s reputation.
Lexington, which has been in business for 11 years, serves 28 brands in 81 countries worldwide. About Lexington Services Lexington Services is one of the largest providers of reservations and centrally hosted technology services to hotels in North America.